Inside Huawei’s R&D Center

7/2/2013 3:17AM

Huawei’s research and development center in Shanghai employs an army of engineers that works on wireless-network technology. The WSJ’s Juro Osawa talks about his visit to the center and Huawei’s business strategy.

This transcript has been automatically generated and may not be 100% accurate.

... the ... Chinese telecom equipment maker Huawei is the thing that is R and D capabilities ... and its best kept secrets an army of sulfur and seniors ... welcome to Asia today I'm unique in joining me to discuss the story is journalists Ally Asia technology correspondent ... Juro Eustace ... just in in Shanghai and you visited their R and D campus in Shanghai ... tells a little but more about that the facility there and what the focus on ... it's it's ... it's in one this is this high that's ... um that that theory laws building and above Hoffa km long ... and ... you see a lot of engineers working the aam ... you know they have a lot of office space is unknown also on the building looks quite nice from the outside as the big garden ... with aplomb and ... in a lot of treason ... in this video on this this is one of the Hobbs full fo is on the ... this is for the main business which is to ... the telecom equipment for more while carriers ... so this is where the Devo ... in the new technology for supporting ... the facilities that you know aam ... photo on ... the networks to mobile carriers to use ... and that the bowel action more than half of always go up there been no global staff ... of his four on Sunday so that they owe engine years ... and down the highway more ... engineers working on software rather than hardware ... because a lot of that a clause in the mall but carriers' news ... that's made possible by ... Mo myself and hardware ... at a really interesting point because we think of highway traditionally a lot of people that I leave this low-cost telecom equipment maker ... the fact that they're focusing on aren't these very interesting ... top with a little bit about how much actually spending and how that compares with competitors like Samsung example ... last year Huawei spent a pilot a full twenty four point seven eight ... billion US dollars on R and D and I was a thirteen percent more than thirteen fifteen percent of their buying higher revenue ... and the balance of the girl off from the previous two years in which they spent about the three point eight billion and also more than double from ... two thousandnine ... so add in on the spending has been growing for the past two years and I quickly ... and I must say a monk always been last year was about the same as was ... Ericsson spent and Ericsson is the biggest player in this of telecom equipment industry ... fall is the second one but therein and getting really close to Ericsson ... and Dom you know it was more a they aren't an understanding was more than other ... players like Alcatel Lucent this new competes in this industry ... so they have been really ... increasing to and from ... any also recently spoke to their chief technology officer ... tell us a little bit about their business strategy in the past they've been really keen on expanding in the U S but as you know there's been a lot of security concerns ... so where the focus now is to leave the euro ... well the US actually has never been the means to market for Huawei it's a was no room for new markets ... of but as the this you know aam in the face challenges and the U S last to know is in the past two years especially last year ... on the U S congressional report came out of talks about the potential ... Bowden national security threat ... you know for ... you this carriers using low is equipment for the maid is ... unknown nearly impossible for Huawei to expand into sex during the U S ... and euro has always been Huawei is a ... major market outside of China ... and I it's the biggest market outside of China who falling ... so aam they have been focusing more more and ... in the UK a non ... earlier this year ... there's also ... been reported ... by a single elements comedian ... the also talked about potential security threat because of Poly's presence than bought ... the executive that I spoke with said ... in the UK and US a completely different situations and ... he talked about how a Huawei works it made a client's a geeky ... and Dom and can also talks of the government reviewing the UK and the true basis it hasn't changed at all he said no because of this of security ... concerns that those raised by the reports of ... key ... note continues he expects it will continue working with ... of those reasons science and ... the company has made ... the investment ... and that that ... that they actually have a hard time making ... this ... again ... okay thanks Fran much Juro Salah for covering that story ... from on this story indebted Des beest dot com I'm unique in for the last two channel digital network thanks for watching